VOLUME 21 - BULLETIN #128

TO:	ALL CLEARING MEMBERS
FROM:	BUSINESS SYSTEMS GROUP
DATE:	June 6, 2001
SUBJECT:	Modified Contra – Trade Id Match Expansion

Beginning Monday, July 16, 2001, the Chicago Board of Trade will expand the Modified Contra (MCR) program to include standard Agricultural and Financial option contracts. Flex Options will not be included in the MCR match. The program, currently in place for all Agricultural and Financial futures contracts, provides for the use of a Trade ID (transaction identifier) in place of opposing firm and is designed to improve the efficiency of getting orders out of the pit on busy trading days.

OPTION TRADE ENTRY

Clearing provides an option trade entry screen in OTIS (Selection 3B. Trade ID / Opposing Firm, Full Size Fields) to aid in entry of the alpha numeric Trade ID. This screen allows the entry of alpha/numeric data in the opposing firm field without the requirement to shift. The Trade ID may be any combination of 2 or 3 alpha/numeric characters but it may not be all alpha or all numeric.

MATCH PROCESSING

During the intra-day match process, Trade ID will replace opposite firm as a critical match field. It is very important that the opposite broker be entered correctly, as the trades will be matched based on the criteria of member, Trade ID, price, and quantity. At the end of the day, unmatched trade records that have a Trade ID can be matched with a non-Trade ID record in the member-to-member match during the final 7:00 p.m. reconciliation. In addition, trades can match Trade ID to Trade ID at the final reconciliation. To prevent misclears, which can occur as broker is ignored in this match, it is important for exchange members to use unique identifiers for each transaction. To identify these trades on the Daily Trade and Position Register, the Trade ID will be populated in the ENTR BKR field.

REPORTS

On the Unmatched Trades report, Trade ID will be populated in the ENTR BKR field and the opposite firm field will be populated with the opposite brokers PCM. Additionally, a new match description, “TRID” will appear next to trades that have met the 4 Way match criteria using a MCR Trade ID. Furthermore, Preliminary trade listings will populate the Trade ID in the opposite firm field and the Daily Trade and Position Register will populate the ENTR BKR field with the Trade ID.

MQM REAL TIME FEED

Duplication records received via MQM Real Time Feed will contain the Trade ID in the Opposite Clearing Member Firm Field (pos. 76-80.) of the TREX Main Block.

REGISTER DATA FILE

The Trade ID will be populated in the matched Opposite Broker of the Register Data file (col. 91-93).

FIRM TESTING

Starting the week of June 25^th and continuing through Friday, July 13^th, the Clearing Corporation’s test environment will be available for firms who want to test the submission of MCR trade IDs for standard option contracts. Preliminary Reports will be produced to allow firms to verify test trade data. Contact the Business Systems Group at one of the numbers listed below to arrange a test.

Should you have any questions, please call or e-mail one of the following Business Systems Analysts: